LG Display reports a return to profitability for the first quarter of the last seven
LG Display is responsible for the various panel types (OLED, P-OLED and LCD, for example) sold by this OEM. It has not had a good time of it financially over the last few years, having sunk into debt following its "large-scale capital expenditures" of 2017. It also posted negative financial figures in 2Q2020, possibly due to the Covid-19 pandemic. However, it had demonstrably turned things around in the following 3 months.
The division reported net profits of 11 billion South Korean won (KRW; or ~US$9.7 million) for 3Q2020, whereas the corresponding figures for 2Q2020 and 3Q2019 were KRW -504 billion (~-$445 million) and -442 billion (~-$309 million) respectively.
LG Display also put its 3Q2020 operating profits at KRW 164 billion (~$145 million), compared to KRW -436 billion (~-$385 million) for 3Q2019. There were also 27% QoQ and 16$ YoY gains in revenue for the group. It attributed this relative success to its ability to adapt to new market conditions.
For example, it recognized that TVs had become home-working and -learning hubs during lockdowns and quarantines as well as gaming and content-consumption devices, and reacted accordingly.
LG Display also noted that its takings grew on the strength of its IT-focused business. Panels for these use-cases accounted for 43% of its 3Q2020 revenue, whereas those for TVs and other devices (smartphones included) provided 28% and 29% of the same.
It also referenced "meaningful improvement in profitability" for its P-OLED business, due to its renewed ability to start supplying to clients in need of these foldable panels for this quarter of 2020.